What’s Behind the Demise of Vietnam’s ‘Captain Sidewalk’?

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An ambitious plan to clear the streets of Ho Chi Minh City (HCMC) and return the sidewalks to pedestrians virtually whimpered to death this month with the resignation of its fiercest and most controversial proponent. Comments made around the matter have suggested the failure of the program is linked to the business elite and the political class which supports them.

The plan, announced in 2016 and launched in February last year, was aimed at turning District 1 in central Ho Chi Minh City into “Little Singapore,” long seen as an aspiration for city planners in parts of the region. Authorities got to work clearing sidewalks of debris, unapproved structures, and street vendors, with the intention of returning the paths to pedestrians. But the snap resignation of District 1 Vice Chairman Doan Ngoc Hai earlier this month underscores the scale of the project and the difficulties in balancing demands of residents and businesses as HCMC looks towards Singapore.

After taking the role, Hai said he would quit if he failed and said as much after announcing his resignation earlier this month. As the main face of the campaign, he was largely supported by the community keen to get back their streets. But mounting coverage of emotional street vendors protesting as authorities confiscated equipment and issued fines projected an image of a government at war with the city’s working class. Hai had reportedly received death threats from vendors last year, and city leadership intervened with the program asking Hai to step down as the public leader and promising the taskforce would only be deployed in instances where a complaint had been made.

The project itself is largely seen as failed and has been all but abandoned. Areas in which the sidewalks were effectively cleared have now become space for the city’s cars and motorbikes, while HCMC’s thriving street food scene had been relocated to designated spots in District 1. The resignation speaks to an issue much larger in Vietnam than the mere misuse of sidewalks. Hai’s letter complained of the project being hamstrung by powerful business interests who have money tied up in operating on the street, and, more pressingly, a political class siding with them over fully supporting the initiative.

In the short-term, city officials will likely go back to the drawing board. City Deputy Chairman Tran Vinh Tuyen stressed the complexities of the issue during a meeting following Hai’s resignation. “Sidewalks are like golden land. Everyone is eyeing them and if we loosen control just a bit they will be snapped up by one person or another,” Tuyen said, as reported by VN Express. But for now, pedestrians will have to again share the paths with vendors and, until March, with car parks, up to the point that a resolution can be found – though there are now strings attached. Tuyen said vendors and car park attendants will be responsible for maintaining the area in which they operate.

But in the long-term, Vietnam’s largest city will have to undergo a more fundamental and awkward soul-searching as it looks towards efforts to modernize in a way which benefits residents, particularly those reliant on informal economy work and family-run businesses, but still realizes the ambitious so-called ‘Little Singapore’ plan. Much of this comes down to Hai’s accusation that city officials have been involved in undermining his taskforce. Hai complained that without the full and unqualified support of the political elite, the taskforce would fail. Sure enough, it did.

With Vietnam’s much publicized crackdown on corruption throughout the political and business class still ongoing, the long running Ho Chi Minh City sidewalk saga shows just how much work is to be done in reforming leadership at every level, and how urgently that sort of effort is needed. While Hai’s allegations are just that at this stage, it does suggest it could be more than just the streets which need cleaning up in Ho Chi Minh City.

Source: Erin Cook

Fish Sauce Helps Vietnam Mint Its Newest Billionaire

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For Vietnamese consumer tycoon Nguyen Dang Quang, placing his fish sauce and other “must-have” condiments in the kitchen shelves of just about every home in the country has helped make him a billionaire.

Shares of Masan Group, which produces the sauce made from fermented fish that’s widely used in Vietnamese cuisine, have more than doubled in the past six months, compared with the 37 percent gain in Vietnam’s benchmark VN Index. That lifted the net worth of Quang, the company’s chairman and founder, to $1.2 billion, according to the Bloomberg Billionaires Index.

“Masan serves consumers with ‘must-have’ ones like fish sauce, instant noodles, to ‘nice-to-have’ items like chili sauce, rice soup or sausage,” said David Anjoubault, general manager at Kantar Worldpanel Vietnam, a research firm that estimates about 95 percent of households in the country uses at least one Masan consumer product. “Local food manufacturers like Masan have a good and deep understanding of shoppers’ needs and behaviors in the country where localization is a vital success factor.”

Stake Ownership

Quang controls the Ho Chi Minh City-based company through Masan Corp., a closely-held entity, as well as its wholly-owned subsidiary Sunflower Construction Co., according to company filings with the Ministry of Planning and Investment. Quang and his wife have a 49 percent stake in the holding company, the filings show.

Quang’s co-founder, Ho Hung Anh, who’s Masan Group’s vice chairman, owned 47.6 percent of the holding company as of September 2015, according to the latest available filings. Anh “contributed to the early stages of Masan Group’s development,” the company website said. His net worth isn’t calculated because his current stake can’t be verified.

Masan Group, which makes other food products including instant noodles and animal feed, declined to comment on the two founders’ net worth.

Masan Group’s shares surged as it recovered from a setback last year following a plunge in pork prices, which it referred to as “the most severe pig price crisis” in history. Pork prices fell after China stopped imports from Vietnam in 2016. The drop in demand for pork drove the group’s consolidated revenue 9 percent lower to 27.5 trillion dong in the first nine months of 2017, according to the company’s presentation.

“Pork prices have rebounded as China resumed the imports of Vietnamese pigs, raising expectations for better performance from Masan Group this year,” said Vu Xuan Tho, a senior analyst at Korea Investment & Securities in Seoul.

Russian Roots

Quang started his business in the 1990s after years of studying in Russia, where he has an MBA from the Plekhanov Russian Economic University. He also received a doctorate in technical sciences from the National Academy of Sciences of Belarus, according to Masan Group’s website.

The billionaire saw an opportunity as Russia was going through a period of economic transition at the time, and started selling instant noodles to Vietnamese living in the country. He eventually built a factory to produce 30 million packages a month, and expanded to soy, fish and chili sauces, according to Masan’s website. Following the success in Russia, he returned to Vietnam in 2001 and shifted the business focus back on his home market.

Kantar Worldpanel, which tracks shoppers’ behavior, ranked Masan Consumer among Vietnam’s top three food brand owners last year, along with Unilever NV and Vietnam Dairy Products or Vinamilk.

Techcombank

Masan Group is best-known for its fish sauce under brands including Chin-Su and Nam Ngu. Other than meat and packaged food, Masan Group also owns more than a third of Vietnam Technological & Commercial Joint-Stock Bank, commonly known as Techcombank, through an equity stake and convertible bonds, according to its presentation.

The possible listing of the bank has also contributed to the jump in Masan Group’s shares, Tho from Korea Investment & Securities said.

Masan Group drew a $250 million investment from KKR & Co. last year, with $150 million going into its meat-producing business, Masan Nutri-Science. That’s the third round of investments in Masan Group from the New York buyout firm, which began in 2011 with a $159 million investment in what was then Vietnam’s biggest private-equity deal.

Quang adds to the two Vietnamese billionaires on international wealth rankings — real estate developer Vingroup’s Pham Nhat Vuong and Vietjet Aviation Joint Stock Co.’s Nguyen Thi Phuong Thao, who’s Southeast Asia’s first self-made woman billionaire.

Source: Yoojung Lee

Saigon has a gem called ‘com tam’

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The classic broken rice dish has taken pride in the daily menu of Saigonese for decades. With its peculiar taste and scent, broken rice has long been considered a favorite by people of all ages and economic backgrounds in Saigon, and only in this city can its true flavor be found.

Com tam, as the food is called in Vietnamese, basically refers to a rice dish whose main ingredient is broken rice, a kind of rice that seems to have been smashed by a crushing machine.

A single spoonful of the delicacy is well enough to strike one’s sense of taste dumb with satisfaction.

The spicy sauce adds not only to the aroma of the well-grilled pork and the smell of oily onions that are served along with the rice, but it also adds to the stiffness of the broken rice, creating a mixture of harmony, yet distinct with varied flavors.

Com tam suon trung: broken rice with grilled pork and omelet sold for VND22,000 (~US$1.00) at a university in Ho Chi Minh City. Photo: Tien Bui

An upgrade of ingredients

Com tam was originally consumed by the poor who could not afford to enjoy the more refined version of rice.

Decades ago the Saigonese had to rely on crude rice processing machines which damaged the final product.

The damaged rice that fell out, the broken rice, was collected by poor workers and turned into a basic rice dish for their daily existence.

Back then, com tam was just a dish consisting of rice, spicy sauce and oily onions.

But somehow, the dish made it to roadside dining places, food stalls at local markets, fancy restaurants, beyond the southern city, and even overseas.

Nowadays, com tam comes with a handful of options.

One can order com tam together with one, some or all of these: suon (grilled pork), bi (long slices of seasoned pork skin), trung (one or two omelets), and cha (meatloaf with egg yolk, mushroom, bean, meat and seasoning, sliced into small bars).

A typical dish of com tam contains a small portion of broken rice with some oily onions scattered on top, surrounded by suon, bi, trung, or cha, as mentioned above.

To vary the taste, the plate is accompanied by tomato and cucumber slices, some sour vegetable stripes, or by a small bowl of vegetable soup.

The spicy sauce, generally deemed key to com tam. Photo: Tien Bui

Tasty, healthy, and cheap

When asked about her preference for this specialty, Ho Nhu Yen, an early-twenty Saigon-based freelance teacher of English said, “I get to eat com tam once a week, sometimes by the roadside and sometimes in a food store.”

Commenting on her choice of com tam over other kinds of rice dish, she stresses that the taste is unparallel.

“But the important thing is com tam normally comes in small portions, so I’m not afraid of getting fat even when I have a plate late evening!” she added.

Many believe the key to the success of any com tam sellers is the recipe of their sauce.

Big restaurants might have a reliable source of pork and high quality ingredients, but some do not provide customers with the scent of sauce found elsewhere by the roadside.

Com tam, originally a food for the average-income laborers, still reigns in the street.

In fact, com tam made list on CNN’s top 40 Vietnamese delicacies as an appetizing roadside dish.

For VND18,000-30,000 (US$0.89-1.33), one can easily grab a plateful of com tam, both flavorsome and fulfilling.

People might also choose to pay more for a nicer and quieter place rather than the cheap roadside low tables and stools.

Some restaurants charge VND80,000 ($3.54) or more for a special serve.

A roadside com tam seller in District 4, Ho Chi Minh City. Photo: Tuoi Tre

Where to find the best ‘com tam’?

The capital of Hanoi, the central Vietnam city of Da Nang, and other provinces do offer com tam, but picky eaters will not find themselves satisfied, as the original taste from the southern metropolis cannot be duplicated.

Com tam is at its best only in Saigon for some reason.

On August 1, 2012, The Asia Record Organization recognized com tam Saigon (Saigon broken rice) amongst ten other Vietnamese dishes for their gastronomic value in Faridabad, India.

Some poets in Saigon have said that com tam has never made it into Vietnamese literature and poems, unlike other specialties like pho (Vietnamese beef noodle soup).

But what hype is needed if it is all in people’s minds and diets?

If the proof of the pudding is in the eating, then the proof of com tam is in its prevalence.

People go for com tam in the morning. To the Vietnamese people, especially those who work as manual laborers, a hearty breakfast empowers their fruitful morning.

What can better fill the stomach and energize the muscles than a plate of com tam?

Com tam offered by the roadside at Thi Nghe Market, District 1, Ho Chi Minh City. Photo: Tuoi Tre

Students, white-collar workers, children, the elderly, all enjoy the flavor of the renowned dish.

Com tam is also available for lunches.

But it is most popular in the evening hours. Com tam dem (night-time broken rice) is the sign hungry locals will look for every here and there on the streets.

It is child’s play looking for com tam, as it is omnipresent under the cover of darkness!

Visitors to Saigon cannot only try the taste of com tam at numerous street food stalls that are scattered all over the city, there are also restaurants such as Com Tam Cali or Com Tam Thuan Kieu who have specialized in serving the broken rice dish.

There might be thousands of great foods out there for the Saigonese living in a city blossoming with domestic and international cuisine, but at the back of their minds, they know well com tam is on the top list.

 

Source: Tuoitrenews

Grab and Uber drivers’ honeymoon finds bitter end

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After enjoying a ‘honeymoon’ of numerous attractive incentives for a short time, drivers of both Grab and Uber are taking to the streets to protest against both Uber and Grab increasing commissions and cutting allowances, while the driver volume increases rapidly.

Crushed dreams of a simple job with high income

According to Nguyen Nam from Hanoi’s Hoang Mai District, he started working for Uber one year ago, when the ride-hailing models of Uber and Grab were enjoying fast development.

Uber and Grab issued numerous attractive incentives to lure in drivers. Thus, he decided to buy a car for VND600 million ($26,420), VND500 million ($22,017) of which came from a four-year bank loan.

At first, by enjoying numerous incentives, Nam earned an income of VND27-30 million ($1,188-1,321) per month, excluding the expenditure of petroleum and commission. According to his calculations, after four years of working for Uber, he would be able to pay off the bank debt and start earning massive profit.

However, his dream broke when Uber cut a number of allowances and increased commission. In addition, the fast increasing number of drivers gave rise to discontent. As a result, Nam decided to sell his car and change his job.

Along with taxi drivers, GrabBike drivers and Uber moto drivers also face similar challenges. Do Hoang from Phu Tho province stated that at the beginning, he earned VND500-600,000 ($22.02-26.42) per day, including expenses for commission and petroleum, however, recently, his income has plunged due to decreasing allowances and increasing commission as well as the increase of moto drivers.

Drivers switching off the app in protest

Since January 1, both Grab and Uber increased their revenue shares from motorcycle and taxi drivers, creating a wave of protests from drivers.

Drivers of both Grab and Uber gathered in front of the companies and offices to ask the board of directors to issue a satisfactory explanation. Numerous drivers either switched off or deleted the ride-hailing app.

Nguyen Trung Thanh, managing director of GrabBike Vietnam, affirmed that the further deduction of 3.6 per cent in drivers’ commission is to pay for drivers’ personal income tax, pursuant to local authorities’ new directions on personal income tax effective since January 1, 2018.

However, GrabBike drivers are not satisfied by the company’s answer and continue to protest. As a result, Grab silently set revenue share back to 20 per cent without notifying drivers. The added revenue which Grab collected from drivers would be paid back before January 17.

Uber, on the other hand, kept silent and closed the doors of its office. However, Uber invited three drivers and police staff to the office for discussions. However, to date, no information about the discussion has been published.

Numerous Uber drivers warned that if Uber cannot issue a satisfactory explanation or decrease the commission, drivers will work for Vietnamese technology transportation firms.

Tilted playing field

Grab and Uber consider drivers as partners, not staff. However, in reality, the relationship is not much different than the one between employers and employees. Notably, almost none of the drivers were consulted about the increase. Uber and Grab always hold the advantage.

According to Bui Danh Lien, deputy chairman of the Hanoi Transport Association, Uber and Grab’s operations showed numerous issues during the pilot scheme for ride-hailing services, leading to conflicts with drivers.

The “transportation model using ride-hailing applications” is considered a model of “sharing economy.” Sharing economy is a term that describes a mode of exchange, sharing of property and services between individuals, through a third party which is a technology application company. This model makes the most of the abundant resources in the society, based on the lease or exchange of assets between owners and those who wish to use them.

However, with the current operations of the car call model in Vietnam, according to some opinions, this form has lost the nature of pure sharing.

Since January 1, GrabBike issued a new hike in commissions to 23.6 per cent from the previous 20.

Meanwhile, Uber’s revenue share in Uber taxi drivers’ income increased to 29.5 per cent, including the commission of 25 per cent and the addition of 4.5 per cent for personal income tax.

All drivers of the two brands complained that the commissions are too high, impacting their income. Additionally, numerous drivers intend to give up their jobs.

5 BEAUTIFUL ISLANDS IN THE SOUTH OF VIETNAM

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Vietnam is famous for a long coast from the North to the South with worldwide well-known beaches. This ‘S-shape’ country possesses more than 4,000 thousands of big and small islands, an endless treasure to the sea tourism development. The most beautiful, peaceful and deserted islands are located in the South of Vietnam.

1. Phu Quoc island

Phu Quoc is one of the most famous islands in Asia. It has been voted as one of 3 top tourist sites in the winter by National Geographic or as one of 10 top ideal destinations in Asia by Asiaone. The trademark of Phu Quoc island is created by beautiful beaches (Star beach, Long beach, etc.), delicious seafood (sea urchins, scallops, sea snails, cobia, herring, etc.) and outdoor activities (skin diving, squid fishing, sunset viewing, etc.). Staying in bungalows along white-sand beaches and going around the island by a rental motorbike definitely interesting experiences for tourists. The best time to visit the island is from December to June (high season) and tourists can reach there by express boats from Rach Gia port or by airplanes from Tan Son Nhat airport.

2. Con Dao island

Although it is a little bit far from the mainland, no Vietnamese people do not know about its existence. The most beautiful beach on the island is Dam Trau, about 15 km from Con Son town. Hat snails and fried country almonds are specialties on Con Dao island. Popular outdoor activities on the island are to go fishing, go skin diving, discover Ong Dung forest, watch Chelonia mydas lay eggs, etc. Tourists can get to the island by boats (12 hours from Cat Lo port in Vung Tau city) or by airplanes (45 minutes from Tan Son Nhat airport).

3. Ba Lua islands

It is located in Kien Giang province (one of nice countries in Mekong delta), a part of Thailand Gulf. Ba Lua islands consist of three big islands (Heo island, Ngang island and Nhum Ba island) and a lot of other small islands. The most interesting activities on Ba Lua islands are to stay with local families (homestay), catch and enjoy seashells on sites. When the tide is down, tourists can walk back and forth between islands. Tourists can only go there by local fishermen’s boats or tourism company’s boats (from Kien Luong port).

4. Nam Du island

It is an island belonging to Kien Giang province. Nam Du possesses many beautiful beaches (Cay Men beach, Ngu beach, etc.) and not exploited as a tourism destination as Phu Quoc island, so this island still keeps its mysterious and peaceful beauty. One plus point for trips to there is the reasonable expenditure for all of the services (hotel, transportation, eating). It is said that local people are very friendly and hospitable.  Tourists can reach the island by renting local fishermen’s boats or by tourist company’s boats (from Kien Giang port).

5. Phu Quy island

Phu Quy island is also called Thu island, about 120 km from Phan Thiet City (Phan Thiet province). It is wide only 16 square km but a very attractive destination. The sunset view from the lighthouse on Cam mountain on the island is said to be the most beautiful in Vietnam. Tourists can ride motorbikes around the island to discover beauty spots such as Trieu Duong beach, coastal paths, Linh Son pagoda in the Cao Cat mountain, etc. Red frog crabs and Vermilion groupers are specialties on Phu Quy island. There are always available tours to Phu Quy island for tourists to book. The boats depart from Phan Thiet port.

 

Source: Sophie Phan

​Vietnam caps promotions for prepaid mobile subscribers

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Mobile carriers in Vietnam will have less freedom in their promotions to prepaid subscribers following a circular by the Ministry of Information and Communications enforcing a ceiling on how much ‘free value’ can be offered.

Specifically, telecom providers in the country are now only allowed to offer no more than 20 percent of a service’s value to prepaid subscribers as a bonus during promotional campaigns.

The limit will apply to different forms of promotion, including bonus credits, in-kind benefits, and other perks.

Previously, the maximum promotional value was set at 50 percent for both prepaid and post-paid subscribers. This limit remains unchanged for the latter.

According to the Ministry of Information and Communications, the new promotion ceiling aims to promote post-paid subscriptions and represents a crackdown on the abuse of prepaid SIM cards to send out spam messages, a technique typically employed by advertisers and online scammers.

The regulation will also ensure fairer competition in the telecom market and better protect the rights of mobile subscribers, the ministry said.

Prepaid users who switch to post-paid subscription plans will enjoy the 50-percent promotion limit after the switch.

“Mobile carriers found to be in violation of this new regulation will be subject to administrative penalties and tax arrears for illegal promotional campaigns,” a ministry official said.

Recently, three major providers in Vietnam – Viettel, Mobifone and Vinaphone – were forced to stop offering data plans that granted subscribers unlimited data to access Facebook and YouTube.

These plans were found to be in violation of pricing regulations for telecom services.

Source: Tuoi Tre News

VN-Index surge is cause for concern

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As the VN-Index breaks the 1,000-point mark and paints a rosy outlook for the rest of 2018, questions have arisen on whether Vietnam is getting too expensive for foreign investors.

A New Year’s high

The Vietnamese stock market got off to a good start in 2018. Its main gauge, the VN-Index, crossed the 1,000-point threshold on January 3 and has returned to its peak 10 years after the speculation bubble burst and crippled the market. Over the past fortnight, the index remained above the 1,000 mark and closed at 1,048 points on Friday morning.

In 2017, Vietnam’s main index grew by 48 per cent, fuelled by strong gains in blue chips, news of state divestments, and increasing attention from foreign investors. Le Duc Khanh, head of Investment Advisory at PetroVietnam Securities Inc., said that the market was buoyed by Vietnam’s stable macro-economics, steady foreign exchange rates, and major foreign investment deals.

“The Vietnamese economy is embarking on a new growth cycle. I believe that if positive news continues, the VN-Index can hit 1,200 points in the first quarter of 2018 and possibly reach 1,400 by the second or third quarter,” Khanh said.

The analyst then listed some of the upcoming share sales that may shake up the market and lure foreign capital into Vietnam, including the sales of PV Oil, PV Power, and Binh Son Refinery – all scheduled for the first quarter of 2018. Major companies such as Genco 1 and 2 as well as Vietnam’s Rubber Group are also up for public listings.

Moreover, the Ministry of Industry and Trade recently announced the list of divestments for 2018, which includes industry heavyweights such as Petrolimex, Vietnam National Textile and Garment Group (Vinatex), Vietnam Steel Corporation (VNSteel), and Vietnam Pharmaceutical Corporation (VinaPharm). The Airports Corporation of Vietnam, managed by the Ministry of Transport, is also up for further state divestments, along with the approved plans for Binh Minh Plastics, Tien Phong Plastics, and Domesco Pharmaceutical.

In the private sector, various banks are also being listed and selling shares to foreign investors, the most recent one being HDBank. TPBank, LienVietPostBank, and Techcombank have also revealed plans to list or raise external capital this year.

These back-to-back deals are expected to draw the attention of overseas investors, be they strategic partners or investment funds.

Too steep a cost?

Despite the rosy outlook, there are also concerns that due to the ongoing rally of the stock market, Vietnam is getting more expensive in foreigners’ eyes, eroding the appeal of Vietnam as a cheap frontier market.

In fact, the current price-over-earnings ratio of Vietnam is 20.2x, placing it higher than Thailand’s 18x, and significantly above Pakistan’s 8x and China’s 16x. According to Mac Quang Huy, CEO of Maritime Securities, this means Vietnam is no longer an affordable market when compared to its neighbours in the region.

“Rising prices mean that Vietnam cannot rely on its cheap valuations to attract overseas investors anymore. It’s time to focus on other factors such as the business results of listed firms, which are forecast to grow by 20 per cent this year. In addition, we need more state divestments and major share sales to increase the supply of stocks for investors,” said Huy.

Nguyen Duc Hung Linh, head of Retail Research and Investment Advisory at Saigon Securities Inc., also acknowledged that the Vietnamese market is no longer a cheap destination for foreign capital. According to Linh, the stock exchange welcomed many high-profile newcomers in 2017, such as shopping mall operator Vincom Retail and budget carrier Vietjet Air, which helped to boost the VN-Index.

“The market was on a bull run last year as these new stocks appreciated a lot in value. I expect a similar occurrence this year, as we have many state divestments and listings coming up,” Linh noted.

In the first week of 2018, foreign investors net bought $73 million of securities in Vietnam, including $45 million in stocks and $28 million in bonds. The National Financial Supervision Council expected stocks in banking, retail, consumer goods, and aviation to lead the gains in 2018.

In its latest report, the council also expected overseas investors to continue flocking to Vietnam despite external factors, such as the US Federal Reserve raising rates or geopolitical pressures around the world.

 

Source: Phuong Nguyen

VIB posts strong profit growth in 2017

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The Vietnam International Bank (VIB) has reported pre-tax profit of over VND1.4 trillion (US$62 million) in 2017, surging 100 per cent year-on-year or far surpassing the yearly target.

VIB’s total assets also saw a positive yearly increase of 18 per cent to VND123 trillion ($5.4 billion), while the bank’s total credit balance amounted to approximately VND90 trillion ($3.95 billion), up 26 per cent year-on-year, according to its business results, which were released on Tuesday.

As per the results, the bank’s capital adequacy ratio (CAR) was 13.1 per cent, its ratios of non-performance loan (NPL) and return on equity (ROE) stood at 2.49 per cent and 12.7 per cent, respectively. Earnings per share were VND2,000, which was considered a high rate among domestic banks.

On January 17, 2017, VIB debuted more than 564.4 million shares on the Unlisted Public Company Market (UPCoM), a move that the bank hoped would create transparency in its activities, share price, market capitalisation and share liquidity, to make it easier for investors to make decisions.

After 12 months, the bank’s share price has increased by 71 per cent to VND29,200 per share from VND17,000 on the first trading day.

Meanwhile, VIB has also been in the top ranking of Moody’s for many consecutive years. As one of 10 banks selected by the State Bank of Viet Nam to pilot Basel II, VIB said it will implement Basel II before the deadline set by the State Bank.

“We are making greater efforts in ensuring the bank’s operation with the best and most transparent standards,” VIB general director Han Ngoc Vu said.

In the years to come, VIB will focus on expanding its scale and continue perfecting the quality of products and services, the bank said.

Top priority will be given to expanding its retail operations, consolidating its leading position in a number of products catering to individuals, small and medium-sized enterprises, bettering customer service, improving labour productivity and bettering risk control in line with international standards.

The bank’s 2018 shareholders meeting will be held in late March.

Source: VNS

Vietnamese spend more on traveling in 2017: survey

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Vietnamese people were increasingly willing to take a vacation after covering the expenses on basic necessities last year, according to a consumer confidence survey by Nielsen, a global market information company.

The research revealed that during the third quarter of 2017, on condition that the payment of essential living costs had been made, more than two out of five people (or 44 percent) in Vietnam showed an inclination to spend their earnings on vacations.

Compared to the preceding quarter, the spending represented a six-percent increase.

The category of travel did not appear in Vietnamese consumers’ saving strategies, which included reducing the money on out-of-home entertainment, new clothes, utilities, take-away meals, and technological device upgrading.

The absence is noteworthy, as the trend for Vietnamese people to make savings for the future was onward, with 63 percent and 66 percent of the consumers surveyed doing this last year during the second and third quarter.

The spare cash was also intended for various purposes such as household improvement, new clothes, and new technological products.

In addition, about 28 percent of the respondents chose to use the money for insurance premiums.

This pattern suggests that the Vietnamese desire an improvement of the quality of life, and they have actually established a solid foundation for its realization in recent times, said Nguyen Huong Quynh, managing director of the Nielsen business in Vietnam.

No official figures on the vacation activity by Vietnamese people have been published yet, but increased income and the popularity of social media may boost the need to travel.

Also, these occurrences might have allowed easier access to booking and destination information and therefore triggered the travel activities of the Vietnamese.

 

Source: Tuoitrenews

6 in every 1,000 Vietnamese drivers are on the phone

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The habit can increase the risk of collision by up to 20 times, but that doesn’t seem to bother many reckless drivers.

People who use their phones while driving can pay a fine of up to $35 for the offence in Vietnam, but that has not been enough to convince many to hang up the dangerous habit, a survey has found.

Six in every 1,000 drivers in Vietnam are on the phone, either texting or talking with the device pressed against their ears, according the survey by the Vietnamese-German Transport Research Center at the Vietnamese-German University based in Binh Duong Province.

The survey, presented at a Tuesday meeting held by the National Traffic Safety Committee, was conducted at nine places in Binh Duong and Saigon last year, and spotted 210,000 people using their phones while driving.

Car and truck drivers were the worst offenders, while 80 percent of all violators were men, the survey found.

More than half of the drivers caught using their phones said they continued driving normally because they felt confident they were in control.

Vu Anh Tuan, director of the research center, said that using the phone while driving can increase the risk of road crashes by three times for cars and 20 times for motorbikes. The risk is 8.5 times higher when drivers are physically holding the phone and five times higher when when they’re using handsfree mode, he said.

Vietnam fines drivers caught using their phones VND600,000 ($26) to VND800,000 ($35), and added car and truck drivers to motorcyclists on the list of offenders at the beginning of 2017, but that does not seem to have helped.

This video shared last July shows a driver glued to his cellphone while driving a bus full of passengers along an expressway in northern Vietnam.

Khuat Viet Hung, vice chairman of the National Traffic Safety Committee, said at the meeting that the behavior “directly affects” road safety. He said the study will be used to improve the legal framework regarding the violation.

Tuan’s study is possibly one of the first about the use of phones on the road in Vietnam, a habit that has been defined as one of the five top causes of road crashes in the world.

“Using a cellphone while driving is definitely a major road hazard in Vietnam,” Greig Craft, the founder of the Asia Injury Prevention Foundation (AIPF), a U.S. non-profit organization that seeks to reduce traffic crash injuries and fatalities in developing countries through public education campaigns, said in a past interview.

“But many people are not yet aware of the extreme danger they are placing themselves and others in when they indulge in this behavior,” Craft said.

In October 2014, Nguyen Trung Hieu killed a family of three when his truck crashed into their motorbike. The father and his three-year-old son were crushed, while the mother succumbed to critical injuries en route to hospital. Police in the central province of Nghe An, where the accident happened, later said Hieu had been talking on his cellphone.

Data from Google showed that more than half of Vietnam’s population own a cellphone, and that’s projected to eight in 10 by 2020.

At the same time, road crashes remain one of the biggest causes of deaths in the country, killing one person every hour on average.

Source: Doan Loan

10 Reasons You Should Move to Asia to Start Your Lifestyle Business

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Today we’re going to look at 10 of the reasons why I think starting a lifestyle business in Asia is such a good idea.

1) Cheap Food and Drink

This seems like such a generic answer for why you should move here, but it’s such a big part of the appeal that it has to be mentioned.

Living in the States is expensive. If you’re in the UK or Australia it’s even more expensive. Food and drink are easily one of the most expensive aspects of our day to day lives.

Especially when you’re in build a business mode and are constantly out meeting people and socializing. In Portland I easily drop $50 or more on a night out meeting people.

Last night in Saigon I got an incredible bowl of pho for 35k Vietnamese Dong – just under $2. The local beer here can be had for 12k Dong – about .$60.

My breakfast this morning. Cost me just over a dollar.

Simply by relocating I can go from averaging $40-50 a day on food and drink to $10 or less all while maintaining a very active social and networking life. That’s huge.

Keep in mind every city is different – Hong Kong for example is not cheaper than living in the western world. But Bangkok, Pnomh Penh, Chiang Mai, Hanoi, Manila and even Bali can be unbelievably affordable.

2) Easy Access to Other Regions

This is one of the things I loved about my time in Bangkok. I could hop on a train and for about $20 I could be on a tropical beach in less than 12 hours – for less than $100 I could be there in a fraction of the time via plane.

With budget airlines and bus systems getting around SE Asia is not only easy, but affordable. You can usually get to any major hub for under $200 round trip if you can stay flexible.

My flight round trip from Hong Kong to Saigon was 15,000 Avios points and $70. Not bad. Although I did chip in an extra 7500 miles to make one of my legs business class.

Can’t go wrong with Cathay Pacific Business ?

Finally got to fly business class ?

3) Easier to Make Contacts

This seems counter intuitive, but I promise you, it’s easier to meet new people likeminded people when you’re in Asia than back home.

Why? Well for starters there’s the simple question:

“Where are you from?”

It’s the easiest intro ever, and you can go to any number of thousands of expat or tourist bars across Asia and meet people simply using that one line.

I’ve found usually if someone is over here from the States they’re usually doing something interesting – and know other people who are as well.

There’s a huge community of entrepreneurs and people who read this blog here in Vietnam. I had a group of a few dozen friends when I lived in Bangkok – and no matter which Asian city you go to, you’ll find the same and find it’s easy to break into the circle.

Bangkok Friends

4) Everyday is an adventure

I often tell the story about how during my first day living in Thailand I saw an elephant walking down the street.

Seriously.

I’ve been in Vietnam for about 24 hours and I’ve already seen a guy with a washing machine on the back of his motorbike, containers full of snakes for sale on the side of the street, and I’ve been nearly killed trying to cross the street no less than a dozen times.

In Bali, I got lost for hours on a motorbike. I was supposed to be going on a quick hour long trip to the center of the island. 2 hours into it I found myself on a beach. To this day it’s one of the most memorable experiences I’ve had while living abroad.

It’s that sense of adventure and “you don’t see that everyday” that makes Asia so unique for me. Every time you travel to a new city, or even a different part of a city you know – you’re exposed to a new adventure.

5) Inexpensive Talent

Many people in Location Rebel start outsourcing and hiring remote workers as their business grows. I’ve found that when working with remote teams it makes a huge difference if you can meet them in person.

Back during my days with the Tropical MBA I spent 3 weeks working with our remote team in the Philippines and the quality of both the work and the relationships were greatly improved.

Hanging in Vietnam with other Tropical MBA alumni.

There’s a plethora of talented people out there that you can pay much less than what you’d pay in the States – but much more than they would typically make in their home country. It forges a unique win/win scenario that is much easier to setup when you’re on the ground.

6) Forces you to think differently

Blind routine is a terrible thing. Deliberate routine is what will make your business successful.

When you’re at home, and especially in a day job, it can be easy to just go through the motions of life and before you realize you’re so stuck in your ways that change is nearly impossible.

Living in Asia forces you to think differently. When you’re first starting out you have to be deliberate about the routines you setup, and it can be a great way to force positive changes.

When I’m in Asia I usually wake up, work out, find a coffee shop or cafe and work for 4 hours. Then I use the afternoons/evenings to explore, meet up with friends, or do more work if I need to.

It gets me out of my normal routine, but also makes me think differently about how I spend my days and make me more productive in the process.

Here is the “office” where I went back and edited this post. If there are spelling errors, you can see why I was probably distracted.

7) Enhanced Access

Like I mentioned, it’s easier to make contacts and meet expats and travelers when you’re in Asia. But what about those top tier people that you’d normally never have access to?

It’s much easier abroad.

Imagine trying to meet Donald Trump in the United States. Probably never going to happen unless you have dreams of reality television.

Simply by speaking English and engraining yourself in one city for 6-12 months you’ll be amazed by who you’ll meet. In BKK I met CEOs, 8 and 9 figure entrepreneurs, and high level political contacts.

If you’re ever looking for funding or to expand beyond a standard lifestyle business, these contacts can be invaluable.

8) Ever Wanted to Live Like a King (or Queen)?

It’s easy to focus on the low cost reasons to come to Asia when you’re starting out.

But whats cool is once your business starts to have even a little bit of success, your lifestyle can ramp up quickly. Bottles in the club? 5 star restaurants? Infinity pools over looking the ocean?

You can have access to all of these things for a fraction of the cost of what they would be in Melbourne or Venice Beach.

A little bit of money goes a long way, and then add on top of that the fact that you’re the anomaly. You’re the one who doesn’t fit in, and who will garner attention. It’s a unique feeling, but one that can allow you to thrive and want to work even harder to continue the success.

A basic room here is under $200 a night. Not exactly backpacker status, but less than half of what you might see similar rooms elsewhere.

9) The Opportunity for a Fresh Start

Many of the people I work with have been beaten down by their jobs and routines. Years of complacency and sleep walking through life can take it’s toll.

Coming out to Asia gives you an opportunity to start fresh. It can take you from jaded to wide-eyed in the time it takes to travel across the Pacific.

For me it was a rebirth. Coming to Asia and having an adventure while building my business, allowed me to truly build the business I wanted and continue that sense of excitement long after I moved back to the United States.

10) The Stories

This one is simple. I judge my success in life by the number of amazing stories I have to share. Why fly halfway around the world to get wedding suits made, when there’s a perfectly fine Mr. Formal, down the street?

Yes, we flew halfway across the world to come here. Can’t go too far wrong with custom tailored suits for $100.

Because a week wandering the streets of Vietnam is much more memorable and story worthy than a quick trip to a strip mall.

As you can see, there’s more to Asia than just a cheap cost of living. The elements of adventure, access, and bustling startup scene make moving there a viable option for someone committed to making things happen.

 

Source: Sean

Da Lat coloured with pink prunus cerasoides blossoms

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Thousands of prunus cerasoides cherry trees in the Central Highlands city of Da Lat are in full bloom with pinkish-white blossoms, creating a magnetic attraction to the locals and visitors.

Pinkish white prunus cerasoides blossoms are bringing about dreamlike scenes across the city which will be a favourable condition for the city to hold the prunus cerasoides blossom festival in late January.

Visitors flock to prunus cerasoides cherry trees to take photos

Fascinating and delicate petals

Youngsters are eager to pose for a photo under prunuscerasoides cherry trees

Da Lat is tinged with beautiful pink prunus cerasoides cherry blossoms

The city becomes busier with visitors coming to enjoy prunus cerasoides blossoms

Pinkish white blossoms creates a romantic space across the city


Prunus cerasoides cherry trees are seen along many streets in the city

 

Source: NDO

Co-living and green: the latest trends to sweep Vietnam’s real estate market

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From co-living spaces to smart offices, these are the new trends that promise to change Vietnam’s property market in 2018. 

Owning real estate will no longer be a priority for millennials across the world, who will make up half of the global workforce by 2020, according to PriceWaterhouseCooper’s latest Millenials at Work report.

The latest trends in real estate development show that environmentally-friendly and smart co-living and co-working models promise to change Vietnam’s property market in 2018.

Co-living 

Shared accommodation is forecast to be the leading trend, as co-living and co-working spaces are becoming more popular among young people. A recent report on Global Market Perspective by Jones Lang LaSalle Vietnam shows that the main target for shared accommodation is young people, and investments have started pouring in.

Many co-working spaces have opened in Hanoi over the past few years. Photo courtesy of Toong co-working space.

Just last year, Ascott Limited, an international serviced residence owner-operator, introduced a new co-living brand called Lyf (pronounced “life”) which is designed for and managed by millenials who wish to experience local life.

Shanghai, Tokyo, London and Paris are forecast to be the cities where demand will rocket to satisfy the increasing need for co-working space among both transnational corporations and startups.

Green and smart offices

Inside Deutsches Haus HCMC. The building is smart, modern and energy-saving.

Green offices have been popular in Vietnam for the past two years, but demand has only recently started increasing for offices that are both green and smart, especially in Saigon.

According to a representative from JLL Vietnam, Deutsches Haus, located in HCMC’s District 1, pioneers the trend for smart-green offices. The building is designed to save energy and integrates the latest German technology.

Real estate experts say that this building is the first in Vietnam and among the few in Southeast Asia to be awarded both a silver DGNB Certificate for a sustainable, green building, and the LEED Certification (Leadership in Energy and Environmental Design).

The market for smart-green offices is forecast to expand in Saigon’s golden areas such as District 1 in 2018.

The rise of homestays

The condotel or hotel-condo, a form of hotel that offers short-term rentals, will face major competition in the real estate market in 2018, forecast Phan Cong Chanh, CEO of Phu Vinh real estate company.

Homestays, garden houses and co-living spaces will be more favored and will be the new trend in 2018.

Homestays are becoming more popular in big cities such as Hanoi and Saigon. Photo courtesy of Le Bleu homestay.

Homestays or similar forms of lodging have already appeared in tourist areas such as Hoi An, Sapa and Cu Chi, but on a small scale, Chanh added. But their popularity and investment in them is likely to rise in 2018.

Though less fancy compared with condotels, homestays and garden houses are legally managed and more tourist-friendly. The low management costs are also beneficial for both customers and investors, Chanh said. Homestays will add more variety to the real estate market, and promise sustainable profit returns of about 6 percent per year.

Ho Chi Minh City was ranked third in a survey of 50 cities worldwide for property rental growth by a survey conducted by real estate firm Savills released in late 2017. Vietnam’s southern metropolis was also ranked fifth in terms of investment prospects, and second for development prospects.

 

Source: Vu Le

There’s A ‘Mr Bean’-Themed Bar In Vietnam And It Sounds Seriously Weird

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Whether he’s getting his head stuck inside a turkey, redecorating his flat by using fireworks or leading an orchestra at the London Olympics, Mr. Bean’s brand of comedy has people around the world in stitches for years.

Well, it seems that someone in Vietnam is so obsessed with Rowan Atkinson’s comic creation that they decided to dedicate a full bar to the bumbling character.

Russell Eslamifar, a tourist from London, was on holiday in the Southeast Asian country and exploring the Old Town district of the city of Hội An when he discovered the Mr Bean Bar.

Credit: Russell Eslamifar

From the outside, the bar looks like a typical tourist boozer with house music banging from the speakers and lights flashing fast enough to give you an epileptic fit.

Inside, though, the bar is obsessed with all things Bean, with the character’s gormless mug gurning down at you from every wall.

Not only is the bar decorated with murals and press shots of Bean and Atkinson, it also shows Mr Bean episodes on TV and sells Mr and Mrs. Bean themed cocktails.

Like any place looking to make cash from gullible tourists, the bar even lets punters leave with a memory of their visit, selling novelty t-shirts reading ‘It’s bean a good night!’ Creative genius…

Credit: Russell Eslamifar

“The only funny thing was how excited I was!’ Russell told LADbible when asked about the bar. “There weren’t many locals in there but mainly tourists go.”

“They obviously know it’s a good tourist pull,” he added. “Mr Bean is universal, isn’t it? He doesn’t speak so everyone loves Bean.”

Russell clearly loved the boozer, although he admitted the themed cocktail wasn’t that great, despite it setting him back 200,000 Vietnamese dong (£6.44, $8.82). Gutted.

‘[The cocktail was] pretty shit, tbh,” Russell said, like any LAD who is full of regret when checking his bank balance the day after the night before. “I ordered it purely because it was a Mr. Bean special.”

Credit: Russell Eslamifar

While Russell left the Mr Bean Bar with a lighter wallet but full of… well… beans, other punters seem to have been less impressed, with the bar getting a bit of a mixed review online.

Over one hundred people have reviewed the bar on Trip Advisor, with most of the reviews veering wildly between a fantastic 5 stars and a totally tragic 1.

The reviews for Mr Bean Bar are decidedly mixed. Credit: Trip Advisor

We’ll let you decide if you want to get yourself over to Vietnam and visit Mr Bean Bar before it’s bean-and-gone… I’ll get my coat.

Source: Chris Ogden

Toyota and Honda suspend exports to Vietnam

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Toyota Motor and Honda Motor have suspended exports to Vietnam since the beginning of the year following the implementation of a rule that requires stringent checks on imported vehicles, a move viewed as protectionism by industry officials.

The new rule came into effect just as Vietnam finally eliminated its import tariff for automobiles from within the Association of Southeast Asian Nations from 30% on Jan. 1, two years later than other developed members of the bloc.

Toyota said on Tuesday that it has halted all production for export to the Vietnamese market. The Japanese automaker manufactures locally in Vietnam, but imports from Thailand, Indonesia and Japan account for around one-fifth of what it sells in the market, or 1,000 units per month. Models imported include the Hilux pickup trucks, Yaris subcompacts, sports utility vehicle Fortuner and the luxury car Lexus.

“The Vietnamese market slowed down last year clearly because consumers refrained from buying as they waited for the tariff removal at the end of 2017,” Toyota Motor Thailand President Michinobu Sugata told reporters in Bangkok.

Indeed, auto sales in Vietnam between January and November slumped 10% on the year to 245,000 units. “We were anticipating a big jump in 2018 but due to the non-tariff barriers set by the Vietnamese government we cannot export to the market at all,” he said.

The so-called Decree 116, announced in October, requires emission and safety tests to be conducted on every batch of automobile to be imported. In the past, only the first shipment of each model would be tested.

The Japanese Chamber of Commerce and Industry in Vietnam said one emission test could take two months and cost up to $10,000. “It will cause [a] huge waste of time and money,” it said in a statement addressing Prime Minister Nguyen Xuan Phuc in December.

The decree also requires all models to obtain a Vehicle Type Approval certification issued by authorities of the exporting country. VTA certifications are to show that the vehicle meets standards of the country it will be sold in and is normally issued by domestic entities of the importing country.

Since the decree was announced in October, the governments of major exporters such as Japan, Thailand and the U.S. have expressed concerns to Vietnam that it would become impossible for them to sell into the country. They have also suggested that the decree could violate World Trade Organization rules.

Source: Big Blow

 

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